Legislature(2019 - 2020)ADAMS ROOM 519

02/17/2020 01:30 PM FINANCE

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Audio Topic
01:35:41 PM Start
01:36:18 PM HB205 || HB206
01:48:39 PM Fy 21 Finance Subcommittee Closeouts
01:49:15 PM Department of Administration
02:02:53 PM Department of Health and Social Services
02:16:12 PM Department of Transportation and Public Facilities
02:19:55 PM Office of Governor
02:24:27 PM Department of Fish and Game
02:27:44 PM Department of Environmental Conservation
02:36:20 PM Department of Education and Early Development
02:43:13 PM Department of Public Safety
03:15:16 PM Department of Military and Veterans Affairs
03:16:43 PM Department of Revenue
03:25:56 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 205 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= HB 206 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+ Subcommittee Closeouts: TELECONFERENCED
- Dept. of Administration
- Dept. of Health & Social Services
- Dept. of Transportation & Public Facilities
- Office of the Governor
- Dept. of Fish & Game
- Dept. of Environmental Conservation
- Dept. of Education & Early Development
- Dept. of Military & Veterans Affairs
- Dept. of Revenue
- Dept. of Public Safety
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                     February 17, 2020                                                                                          
                         1:35 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:35:41 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Foster  called the House Finance  Committee meeting                                                                    
to order at 1:35 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Jennifer Johnston, Co-Chair                                                                                      
Representative Dan Ortiz, Vice-Chair                                                                                            
Representative Ben Carpenter                                                                                                    
Representative Andy Josephson                                                                                                   
Representative Gary Knopp                                                                                                       
Representative Bart LeBon                                                                                                       
Representative Kelly Merrick                                                                                                    
Representative Colleen Sullivan-Leonard                                                                                         
Representative Adam Wool                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Cathy Tilton                                                                                                     
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Alexei  Painter,  Analyst,   Legislative  Finance  Division;                                                                    
Robert  Irvine,  Staff,  Representative  Jennifer  Johnston;                                                                    
Erin  Shine, Staff,  Representative Jennifer  Johnston; Paul                                                                    
Labolle, Staff,  Representative Neal Foster;  Ryan Johnston,                                                                    
Staff,   Representative  Neal   Foster;  Kelly   Cunningham,                                                                    
Analyst, Legislative Finance  Division; Liz Harphold, Staff,                                                                    
Representative Dan  Ortiz; Michael Partlow,  Fiscal Analyst,                                                                    
Legislative   Finance   Division;  Caroline   Hamp,   Staff,                                                                    
Representative Dan Ortiz;  Joe Byrnes, Staff, Representative                                                                    
Bart  LeBon;  Amanda   Price,  Commissioner,  Department  of                                                                    
Public  Safety; Anne  Rittgers,  Staff, Representative  Bart                                                                    
LeBon.                                                                                                                          
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
None                                                                                                                            
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 205      APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                
                                                                                                                                
            HB 205 was HEARD and HELD in committee for                                                                          
            further consideration.                                                                                              
                                                                                                                                
HB 206      APPROP: MENTAL HEALTH BUDGET                                                                                        
                                                                                                                                
            HB 206 was HEARD and HELD in committee for                                                                          
            further consideration.                                                                                              
                                                                                                                                
FY 21 FINANCE SUBCOMMITTEE CLOSEOUTS:                                                                                           
     DEPARTMENT OF ADMINISTRATION                                                                                               
     DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                                                                   
    DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES                                                                          
     OFFICE OF GOVERNOR                                                                                                         
     DEPARTMENT OF FISH AND GAME                                                                                                
     DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                                                                   
     DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT                                                                              
     DEPARTMENT OF MILITARY AND VETERANS AFFAIRS                                                                                
     DEPARTMENT OF REVENUE                                                                                                      
     DEPARTMENT OF PUBLIC SAFETY                                                                                                
                                                                                                                                
HOUSE BILL NO. 205                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain    programs;    capitalizing   funds;    making                                                                    
     appropriations under art.  IX, sec. 17(c), Constitution                                                                    
     of the State of  Alaska, from the constitutional budget                                                                    
    reserve fund; and providing for an effective date."                                                                         
                                                                                                                                
HOUSE BILL NO. 206                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive mental health  program; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
1:36:18 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster  reviewed  the   agenda  for  the  day.  He                                                                    
indicated  the committee  would be  adopting the  Governor's                                                                    
version of the  operating budgets. The only  changes made in                                                                    
the committee  substitutes were technical and  structural in                                                                    
nature  and were  made by  the Legislative  Finance Division                                                                    
(LFD) and Legislative Legal Services.  After the adoption of                                                                    
the work drafts  for both budget bills,  the committee would                                                                    
hear a presentation  by LFD regarding the  changes that were                                                                    
made.                                                                                                                           
                                                                                                                                
Co-Chair   Johnston  MOVED   to  ADOPT   proposed  committee                                                                    
substitute    for   HB    205,   Work    Draft   31-GH2197\M                                                                    
(Bruce, 1/24/20) (copy on file).                                                                                                
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair   Johnston  MOVED   to  ADOPT   proposed  committee                                                                    
substitute  for  HB  206,  Work  Draft  31-GH2198\M  (Bruce,                                                                    
1/22/20) (copy on file).                                                                                                        
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair  Foster invited  Mr.  Painter to  walk through  the                                                                    
changes to the work drafts.                                                                                                     
                                                                                                                                
1:38:24 PM                                                                                                                    
                                                                                                                                
ALEXEI  PAINTER,  ANALYST,   LEGISLATIVE  FINANCE  DIVISION,                                                                    
reviewed  the changes  to  the  work draft  of  HB 205.  The                                                                    
changes were technical and conforming  changes made to bring                                                                    
the  bill  to the  legislative  drafting  manual format.  He                                                                    
noted members should have a document listing the changes.                                                                       
                                                                                                                                
     Summary of Changes from the Governor's Operating Bill                                                                      
     and CSHB 205(Finance)                                                                                                      
                                                                                                                                
     Work Draft 31-GH2197\M                                                                                                     
        1. Title: Add "supplemental appropriations."                                                                          
        2. The lead-in language in section 1 on page 2 was                                                                    
          modified  to the  legislature's standard  language                                                                    
          that appears  in both HB  205 and HB 206  and that                                                                    
          includes  the   addition  of  this   sentence,  "A                                                                    
          department-wide,   agency-wide,   or   branch-wide                                                                    
          unallocated reduction set out  in this section may                                                                    
          be  allocated  among  the appropriations  made  in                                                                    
          this  section  to   that  department,  agency,  or                                                                    
          branch."                                                                                                              
        3. Section 8 (page 50, starting line 21): Reorder                                                                     
          sections  so  that  royalty  deposits  are  first.                                                                    
          Reword section (c)  so that the net  amount to the                                                                    
          general fund is shown  rather than the entire POMV                                                                    
          draw.                                                                                                                 
        4. Section 19(e) (page 57, line 7): Reword to                                                                         
          simplify  since UA  is the  only named  recipient.                                                                    
          Because   the  Governor   did   not  include   the                                                                    
          appropriations  for   DOTPF  and  AEA   debt,  the                                                                    
          previous  formatting with  a list  of projects  is                                                                    
          unnecessary.                                                                                                          
        5. Section 21(w) (page 65, line 10): Add fiscal year                                                                  
          that the revenue will be collected.                                                                                   
        6. Section 22(l) (page 67, line 14): Add "unexpended                                                                  
          and  unobligated" to  clarify  that existing  fund                                                                    
          obligations    are    not   affected    by    this                                                                    
          appropriation.                                                                                                        
        7. Section 25(g) (page 71, line 18): Change 2020 to                                                                   
         2019 to correct error in Governor's bill.                                                                              
        8. Section 28 (page 72, line 8): Update references                                                                    
          due to reordering of sections.                                                                                        
Representative  Sullivan-Leonard asked  Mr. Painter  to slow                                                                    
his pace.                                                                                                                       
                                                                                                                                
1:44:00 PM                                                                                                                    
                                                                                                                                
Representative  Knopp  had  a   question  unrelated  to  the                                                                    
changes  to the  bill. He  referred to  page 65,  lines 7-10                                                                    
regarding  funding   for  the  Alaska   Gasline  Development                                                                    
Corporation  (AGDC).  He  wondered   about  actions  by  the                                                                    
legislature  in   the  previous   year.  He  asked   if  the                                                                    
legislature  was simply  transferring receipt  authority. He                                                                    
queried  whether  the  liquified  natural  gas  project  was                                                                    
separate  from  the  Alaska Liquified  Natural  Gas  (AKLNG)                                                                    
project. Mr.  Painter was  not prepared  to speak  about the                                                                    
section referenced, but could get back to him.                                                                                  
                                                                                                                                
Vice-Chair Ortiz referred to page  67, line 19 and asked for                                                                    
more detail  about the date  change and monies.  Mr. Painter                                                                    
responded that  the date change  was in a  different section                                                                    
of the bill.  He explained the change  added the unexpended,                                                                    
unobligated balance. The item was  the transfer of the large                                                                    
passenger  vessel gaming  and gambling  tax  account to  the                                                                    
capital  income fund  - an  undesignated general  fund (UGF)                                                                    
tax. It was  being transferred into the  capital income fund                                                                    
in the  governor's bill.  Some years  the same  transfer had                                                                    
been implemented,  and in other  years the funding  had gone                                                                    
elsewhere.  It was  a UGF  tax and  could be  spent for  any                                                                    
purpose.                                                                                                                        
                                                                                                                                
Vice-Chair Ortiz  asked where the  funding had  been applied                                                                    
historically. Mr.  Painter believed  it went to  the general                                                                    
fund in the prior year. In  FY 19 he believed the amount had                                                                    
gone  into  the capital  income  fund.  He could  provide  a                                                                    
larger history.                                                                                                                 
                                                                                                                                
Representative  Josephson asked  for an  explanation of  the                                                                    
supplemental  appropriation found  in  HB  205. Mr.  Painter                                                                    
referred  to  item  10(h)  on  page  53  of  the  bill.  The                                                                    
supplemental item was an appropriation  of $2.8 million from                                                                    
the Capstone Avionics Revolving  Loan Fund to the Department                                                                    
of  Commerce  and  Community  Development  (DCCED)  for  the                                                                    
Alaska Development  Team. It  was a  multi-year supplemental                                                                    
from  FY 20  through FY  23. He  explained that  because the                                                                    
fund lapsed  on June 30,  in order  to use the  receipts, it                                                                    
must have an FY 20 effective date.                                                                                              
                                                                                                                                
Mr.  Painter  reviewed the  changes  to  the work  draft  of                                                                    
HB 206.                                                                                                                         
                                                                                                                                
   HB 206: Work Draft 31-GH2198\M                                                                                               
                                                                                                                                
     1. The lead-in language in section 1 on page 2 was                                                                       
        modified to the legislature's standard language that                                                                    
        appears in both HB 205 and HB  206 and that includes                                                                    
        the addition of  this sentence,  "A department-wide,                                                                    
        agency-wide, or  branch-wide  unallocated  reduction                                                                    
        set out in this  section may be allocated  among the                                                                    
        appropriations  made   in  this   section  to   that                                                                    
        department, agency, or branch."                                                                                         
     2. Page 10: OMB omitted the second fund source roll-up.                                                                  
        Leg  Finance  added  it,   which  caused  subsequent                                                                    
        sections to be renumbered.                                                                                              
Mr. Painter  indicated there  were no  other changes  to the                                                                    
bill.                                                                                                                           
                                                                                                                                
^FY 21 FINANCE SUBCOMMITTEE CLOSEOUTS                                                                                         
                                                                                                                                
1:48:39 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster relayed that the committee would be                                                                             
reviewing the House Finance Subcommittee close-out reports                                                                      
beginning with the Department of Administration (DOA).                                                                          
                                                                                                                                
^DEPARTMENT OF ADMINISTRATION                                                                                                 
                                                                                                                                
1:49:15 PM                                                                                                                    
                                                                                                                                
ROBERT IRVINE, STAFF, REPRESENTATIVE JENNIFER JOHNSTON,                                                                         
provided some narrative. He read directly from the                                                                              
subcommittee report:                                                                                                            
                                                                                                                                
     The Legislature has been grappling  with the impacts of                                                                    
     billion-dollar deficits  over the last eight  years. In                                                                    
     response  to the  fiscal situation,  the Department  of                                                                    
     Administration's   Unrestricted   General  Fund   (UGF)                                                                    
     budget has been reduced to  funding levels last seen 10                                                                    
     years ago.                                                                                                                 
                                                                                                                              
     Subcommittee Meetings:                                                                                                     
                                                                                                                                
     The subcommittee  held a total  of 6 meetings;  1 joint                                                                    
     meeting   with  Legislative   Finance  and   department                                                                    
     personnel  to  overview   the  department's  budget,  4                                                                    
     meetings  with department  personnel to  examine budget                                                                    
     components  in  detail,  and  2  meetings  to  consider                                                                    
     amendments and closeout the subcommittee.                                                                                  
                                                                                                                                
     During the meetings  discussions revolved around future                                                                    
     savings  to   be  realized  by  the   consolidation  of                                                                    
     services, savings related to  changes with employee and                                                                    
     retiree healthcare,  the challenges of  recruitment and                                                                    
     retention  within  the   Legal  and  Advocacy  Services                                                                    
     component,  and  an  update from  the  Commissioner  on                                                                    
     public  media and  rural service  issues as  well as  a                                                                    
     response from a public media representative.                                                                               
                                                                                                                              
     Subcommittee Recommendations:                                                                                              
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of  Administration  submits  the  following                                                                    
     recommendations for the FY 2021 operating budget:                                                                          
                                                                                                                                
     (Dollars in thousands)                                                                                                     
                                                                                                                                
     Unrestricted General Funds (UGF) $67,400.7                                                                                 
     Designated General Funds (DGF) $26,075.4                                                                                   
     Other Funds $265,003.9                                                                                                     
     Federal Funds $1,104.7                                                                                                     
     Total Budget $359,584.7                                                                                                    
                                                                                                                                
     UGF in the  Subcommittee's recommendation is $5,013,200                                                                    
     above the  FY21 Adjusted Base and  $1,372,700 above the                                                                    
     FY21  Governor's  Request.  The  majority  of  the  UGF                                                                    
     increases are  the result  of the use  of PCE  funds to                                                                    
     fund  HB 49  fiscal notes  during the  2019 legislative                                                                    
     session. This year, UGF will  be used to fund the items                                                                    
     included in the HB 49 fiscal notes.                                                                                        
                                                                                                                                
     Budget Action:                                                                                                             
                                                                                                                                
     The  Governor's FY  21 budget  proposed a  total of  28                                                                    
     changes  from the  FY 21  Adjusted  Base budget.  After                                                                    
     learning about each item,  the subcommittee adopted all                                                                    
     28 changes with unanimous consent.                                                                                         
                                                                                                                                
     Some of the highlights of these items:                                                                                     
                                                                                                                                
          Increases to pay for Attorney's bar dues for                                                                        
          recruitment and retention purposes.                                                                                   
          A funding mechanism change for Office of Public                                                                     
          and Advocacy and Public Defender budgets to use                                                                       
          UGF instead of Power Cost Equalization funds.                                                                         
          An increase of $1,235,000 and 10 new positions                                                                      
          for the Office of Public Advocacy.                                                                                    
          Additional travel resources for the Office of                                                                       
          Public Advocacy and Public Defender Agency.                                                                           
          Reductions across multiple budget components to                                                                     
          realize savings as a result of Office of                                                                              
          Information Technology and Shared Services of                                                                         
          Alaska consolidation.                                                                                                 
                                                                                                                                
     Subcommittee Amendments:                                                                                                   
                                                                                                                                
     The  subcommittee considered  three amendments.  Due to                                                                    
     ongoing  conversations   between  the   department  and                                                                    
     public  media officials  about  the  needs of  Alaska's                                                                    
     public   broadcasting   community,   the   subcommittee                                                                    
     allocated  only  $1  million  for  public  broadcasting                                                                    
     grants. The  subcommittee also added $372,700  to fully                                                                    
     fund  the request  of the  Alaska  Mental Health  Trust                                                                    
     Authority  and  fixed  an over  appropriation  of  boat                                                                    
     receipts.                                                                                                                  
                                                                                                                              
     Attached Reports:                                                                                                          
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of  Administration   adopted  the  attached                                                                    
     reports generated by the  Subcommittee and the Division                                                                    
     of Legislative Finance:                                                                                                    
                                                                                                                                
          DOA Budget Action Worksheet                                                                                         
          DOA-Agency Total- Legislative Finance                                                                               
          DOA Wordage- Legislative Finance                                                                                    
          DOA Transaction Compare 1- Legislative Finance                                                                      
          DOA- Transaction Compare 2-Legislative Finance                                                                      
                                                                                                                                
Representative   Josephson  asked   Mr.  Irvine   about  the                                                                    
subcommittee adding funds to meet  the demands of the Alaska                                                                    
Mental  Health   Trust  Authority  (AMHTA).  He   asked  for                                                                    
specifics.  Mr.   Irvine  responded  that  they   asked  for                                                                    
$138,000  of   Mental  Health  Trust   Authority  Authorized                                                                    
Receipts (MHTAAR) funds and a state match of $372,000.                                                                          
                                                                                                                                
Representative  Wool referred  to  the  report. He  wondered                                                                    
about the increase  to pay for the attorneys'  bars dues for                                                                    
recruitment  and retention  purposes. He  wondered what  the                                                                    
cost  equated  to per  individual  and  per department.  Mr.                                                                    
Irvine indicated that the cost  per attorney was about $600.                                                                    
Representative Wool asked if the  fee was annual. Mr. Irvine                                                                    
responded that  it was  a yearly fee.  He reported  that the                                                                    
fee for the Office of  Administrative Hearings was $1700; in                                                                    
the  commissioner's  office the  cost  was  $6300; in  Labor                                                                    
Relations  the  fee  was  $3500; in  the  office  of  Public                                                                    
Advocacy the amount was $38,000;  and in the Public Defender                                                                    
Agency the fee was $66,000.                                                                                                     
                                                                                                                                
1:54:36 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Ortiz  asked  about  the  allocation  to  Public                                                                    
Broadcasting.   Mr.   Irvine   responded   that   the   past                                                                    
appropriation  for Public  Broadcasting,  not including  the                                                                    
satellite infrastructure,  had been about $2.7  million. The                                                                    
committee decided  to appropriate  $1 million for  the radio                                                                    
portion of the grants.                                                                                                          
                                                                                                                                
Vice-Chair Ortiz  asked if discussion  had ensued  about the                                                                    
impact on  the group of  people not receiving  $2.7 million.                                                                    
It was his  understanding that the amount was  vetoed by the                                                                    
governor. He asked  if there had been  statements made about                                                                    
not having access to the resources.                                                                                             
                                                                                                                                
Co-Chair  Johnston responded  that  there  had been  several                                                                    
robust  conversations on  the topic.  She  indicated in  her                                                                    
last conversation with Alaska  Public Broadcasting, Inc. she                                                                    
requested  an Excel  Spreadsheet which  she never  received.                                                                    
She  thought  the state  could  make  a  good case  for  the                                                                    
$1 million  for radio  because of  health and  safety issues                                                                    
and  because  radio  had great  outreach  capabilities.  She                                                                    
hoped  radio  would remain  as  part  of the  public  safety                                                                    
structure and stay in the budget.                                                                                               
                                                                                                                                
Vice-Chair  Ortiz  asked  if  the  Excel  Spreadsheet  would                                                                    
eventually be  provided. Co-Chair Johnston responded  in the                                                                    
negative.  She  noted  there was  concern  the  Broadcasting                                                                    
Commission had  not met.  Impacts had  been felt  around the                                                                    
state due  to the reduction  in funding. However,  she could                                                                    
not  speak  specifically  to  how   each  station  had  been                                                                    
affected.                                                                                                                       
                                                                                                                                
1:58:25 PM                                                                                                                    
                                                                                                                                
Representative  Knopp  asked  if   any  of  the  discussions                                                                    
regarding  the  information   technology  consolidation  and                                                                    
outsourcing   had  included   contracts  in   the  budgeting                                                                    
process.  Mr.   Irvine  responded   that  there   were  many                                                                    
conversations that  had taken place  over the prior  5 years                                                                    
in terms of consolidation and strategies going forward.                                                                         
                                                                                                                                
Representative Knopp asked  if the Cloud had been  a part of                                                                    
the discussions.  Co-Chair Johnston  believed Representative                                                                    
Knopp  was  posing  two   unrelated  questions.  First,  she                                                                    
responded that  the department had  hired a company  to help                                                                    
the  state to  structure its  IT shared  services. She  felt                                                                    
much  better after  conversations with  the contractor.  She                                                                    
hoped  the  consolidation  would  result in  a  savings.  In                                                                    
response to Representative Knopp's  question about moving to                                                                    
the use of  the Cloud, she reported that the  idea was being                                                                    
researched and would  likely create a savings  for the state                                                                    
in terms of time and efforts in keeping servers running.                                                                        
                                                                                                                                
Representative Knopp  thought the state had  a 3-year signed                                                                    
contract with Microsoft for $15  million. He wondered if any                                                                    
employees  had  been  disbursed or  whether  the  state  had                                                                    
experienced  cost savings.  Co-Chair Johnston  thought there                                                                    
had been cost savings  throughout the department. Mr. Irvine                                                                    
reported  a reduction  of 10  positions  and an  anticipated                                                                    
savings  of about  $20  million for  the  department in  the                                                                    
current year.  He thought Mr.  Painter might  have something                                                                    
to add.                                                                                                                         
                                                                                                                                
Mr.  Painter  responded that  there  was  a letter  sent  in                                                                    
response  to legislative  intent  from  the department  that                                                                    
outlined the  anticipated cost savings  through a  number of                                                                    
IT initiatives.  He could supply  a copy of  the information                                                                    
to the committee.  It contained a number  of items including                                                                    
the Cloud.                                                                                                                      
                                                                                                                                
Co-Chair Foster thanked Mr. Irvine  and invited Ms. Shine to                                                                    
the table.                                                                                                                      
                                                                                                                                
^DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                                                                     
                                                                                                                                
2:02:53 PM                                                                                                                    
                                                                                                                                
ERIN   SHINE,  STAFF,   REPRESENTATIVE  JENNIFER   JOHNSTON,                                                                    
reviewed  the  subcommittee  report for  the  Department  of                                                                    
Health and Social Services:                                                                                                     
                                                                                                                                
     The Legislature has been grappling  with the impacts of                                                                    
     billion-dollar  deficits over  the last  few years.  In                                                                    
     response  to the  fiscal situation,  the Department  of                                                                    
     Health and  Social Services' Unrestricted  General Fund                                                                    
     budget has  been reduced by $141,638.4  (11.3%) between                                                                    
     FY15 Management  Plan and  the FY21  Budget recommended                                                                    
     by the House Finance Subcommittee.                                                                                         
                                                                                                                              
     SUBCOMMITTEE MEETINGS                                                                                                      
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of Health  and  Social  Services held  nine                                                                    
     meetings   with   department    personnel   to   review                                                                    
     divisions, programs  and the FY21 budget  requests, and                                                                    
     two meetings  to consider  amendments and  closeout the                                                                    
     subcommittee.                                                                                                              
                                                                                                                              
     RECOMMENDATIONS                                                                                                            
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of Health and  Social Services recommends an                                                                    
     operating  budget   for  FY21  to  the   House  Finance                                                                    
     Committee as follows:                                                                                                      
                                                                                                                              
     Fund Source:                                                                                                               
                                                                                                                                
     Unrestricted General Funds (UGF) $1,109,740.8                                                                              
     Designated General Funds (DGF) $86,436.8                                                                                   
     Other Funds $167,710.6                                                                                                     
     Federal Funds $2,065,065.5                                                                                                 
     Total $3,428,952.7                                                                                                         
                                                                                                                                
     The  General  Fund   difference  from  FY21  Governor's                                                                    
     Request  to  the  FY21 House  Subcommittee  Recommended                                                                    
     budget is $316.6.                                                                                                          
                                                                                                                              
     Positions:                                                                                                                 
                                                                                                                                
     Permanent Full-time 3,386                                                                                                  
     Permanent Part-time 26                                                                                                     
     Temporary 86                                                                                                               
     Total 3,498                                                                                                                
                                                                                                                                
     SUBCOMMITTEE BUDGET RECOMMENDATIONS:                                                                                       
                                                                                                                                
     The  Governor's FY21  budget  proposed  changes to  the                                                                    
     FY21 Adjusted  Base. After  deliberating and  voting on                                                                    
     each  item,  the   subcommittee's  recommendations  are                                                                    
     outlined below.                                                                                                            
                                                                                                                                
    Governor's FY21 Budget Items Approved as Requested                                                                          
     The  subcommittee  recommends  the following  items  be                                                                    
     adopted:                                                                                                                   
                                                                                                                                
     Alaska Pioneer Homes                                                                                                       
          Increase General Funds for Alaska Pioneer Homes                                                                     
          Payment Assistance;                                                                                                   
          Reduce unrealizable authority for GF/Program, I/A                                                                   
          Receipts and Statutory Designated Fund;                                                                               
                                                                                                                                
     Behavioral Health                                                                                                          
          Increase and continuation for MHTAAR funding for                                                                    
          ABADA/AMHB Joint Staffing;                                                                                            
          Fund   source   change   for   Behavioral   Health                                                                  
          Administration;                                                                                                       
                                                                                                                                
     Children's Services                                                                                                        
          Increase Federal  authority for Front  Line Social                                                                  
          Workers and Family Preservation;                                                                                      
          Fund  source   changes  for   Children's  Services                                                                  
          Training,     and    Subsidized     Adoptions    &                                                                    
          Guardianship;                                                                                                         
                                                                                                                                
     Public Assistance                                                                                                          
          Restore  Adult  Pubic  Assistance  Maintenance  of                                                                  
          Effort;                                                                                                               
          Fund  source  changes  for  Child  Care  Benefits,                                                                  
          Public    Assistance     Administration,    Public                                                                    
          Assistance Field Services, and Quality Control;                                                                       
                                                                                                                                
     Public Health                                                                                                              
          Accept  the Transfer  of the  Parents as  Teachers                                                                  
          Program  from  the  Department  of  Education  and                                                                    
          Early  Development   to  Public   Health's  Women,                                                                    
          Children and Family Health program;                                                                                   
          Increase Statutory Designated  funds for Emergency                                                                  
          Programs as  a result  from legislation  passed in                                                                    
          2019 (SB 93);                                                                                                         
          Fund  source  changes   for  Women,  Children  and                                                                  
          Family Health;                                                                                                        
                                                                                                                                
     Senior and Disabilities Services                                                                                           
          Accept  MHTAAR  funding  for the  Rural  Home  and                                                                  
          Community Based Services Coordinator;                                                                                 
          Increase Federal and  General Fund Match authority                                                                  
          for  maintenance and  operation of  the Electronic                                                                    
          Visit Verification;                                                                                                   
          Accept MHTAAR funding for  an Alaska Commission on                                                                  
          Aging   Planner,    a   Governor's    Council   on                                                                    
          Disabilities   and   Special   Education   (GCDSE)                                                                    
          Research  Analyst  III   and  a  GCDSE  Employment                                                                    
          Beneficiary  Employment   Technical  Assistance  &                                                                    
          Program Coordination;                                                                                                 
          Fund  source change  for  Senior and  Disabilities                                                                  
          Services Administration;                                                                                              
                                                                                                                                
     Departmental Support Services                                                                                              
          Increase UGF for  Office of Information Technology                                                                  
          salary adjustments billed to the department;                                                                          
          Accept  an Interagency  Receipt technical  fix for                                                                  
          Information Technology Services and Rate Review                                                                       
          Increase  Interagency Receipts  for Rate  Review's                                                                  
          authority  for  the  Emergency  Medical  Transport                                                                    
          Service  Payments  as  a result  from  legislation                                                                    
          passed in 2018 (HB 176);                                                                                              
          Reduce  General  Fund  Program Receipts  for  Rate                                                                  
          Review's Certificate of Need Program;                                                                                 
          Fund   source   changes    for   Public   Affairs,                                                                  
          Commissioner's   Office,  Administrative   Support                                                                    
          Services,  Information  Technology  Services,  and                                                                    
          Rate Review;                                                                                                          
                                                                                                                                
     Medicaid Services                                                                                                          
          Increase    Federal    Receipts   and    Statutory                                                                  
          Designated  funding  for  Medicaid Services  as  a                                                                    
          result from legislation passed in 2018 (HB 176);                                                                      
          Increase General Fund  Match and Federal authority                                                                  
          for Medicaid Services; and                                                                                            
          Increase  General Fund  Match authority  for Adult                                                                  
          Preventative Dental Medicaid Services.                                                                                
                                                                                                                                
     Governor's    FY21   Budget    Items   Approved    with                                                                    
     Modifications                                                                                                              
     The subcommittee recommends the following items be                                                                         
     adopted with modifications:                                                                                                
                                                                                                                                
     Behavioral Health                                                                                                          
          Decrease General Fund  Mental Health and Marijuana                                                                  
          Education and  Treatment fund  source change  to a                                                                    
          sustainable level for  Behavioral Health Treatment                                                                    
          and Recovery Grants;                                                                                                  
          Decrease  Restorative Justice  funding and  offset                                                                  
          reduction   with   General  Fund   Mental   Health                                                                    
          authority  for  Behavioral  Health  Treatment  and                                                                    
          Recovery Grants to maintain  grants at the current                                                                    
          level;                                                                                                                
                                                                                                                                
     Public Health                                                                                                              
          Accept  the  MHTAAR   funding  for  the  Emergency                                                                  
          Programs'    Comprehensive     Program    Planning                                                                    
          Coordinator  and   include  General   Fund  Mental                                                                    
          Health match for the position;                                                                                        
                                                                                                                                
     Departmental Support Services                                                                                              
          Reduce the Commissioner's  Office request for four                                                                  
          additional  staff  (Deputy  Commissioner,  Project                                                                    
          Coordinator,    Special     Assistant    to    the                                                                    
          Commissioner,   and   Program   Coordinator)   and                                                                    
          associated  funding to  include  only the  Special                                                                    
          Assistant  to the  Commissioner (06-#219)  and the                                                                    
          associated General Fund  and Federal authority and                                                                    
          funding.                                                                                                              
                                                                                                                                
     Governor's FY21 Budget Items Not Adopted                                                                                   
     The Subcommittee recommends the following items not be                                                                     
     adopted:                                                                                                                   
                                                                                                                                
     Senior and Disabilities Services                                                                                           
          Reject the Federal Receipt authority request for                                                                    
          the  Children  and  Family  Preschool  Development                                                                    
          Grant  the state was not awarded this grant;                                                                          
                                                                                                                                
     Additions and Deletions                                                                                                    
                                                                                                                                
     In addition to the Governor's FY21 Budget items, the                                                                       
     subcommittee considered and recommends adopting the                                                                        
     following items:                                                                                                           
                                                                                                                                
          Restore Suicide Prevention Council funding for                                                                      
          suicide prevention grants;                                                                                            
          Remove Recidivism Reduction funding from the                                                                        
          Pioneer Homes and  Alaska Pioneer Homes Management                                                                    
          allocations  and replace  decrements with  General                                                                    
          Funds;  reduce General  Funds from  the Behavioral                                                                    
          Health  Treatment and  Recovery Grants  allocation                                                                    
          and replace with Recidivism Reduction funding;                                                                        
          Increase the General Fund Mental Health match for                                                                   
          existing  MHTAAR funding  required for  Senior and                                                                    
          Disabilities  Services  IT  Application/Telehealth                                                                    
          Services System Improvements; and                                                                                     
          Insert    Senior    and   Disabilities    Services                                                                  
          Administration level intent  language to require a                                                                    
          report analyzing  individuals on  the Intellectual                                                                    
          and Developmental Disabilities waiver waitlist.                                                                       
                                                                                                                                
     ATTACHED REPORTS                                                                                                           
                                                                                                                                
     The House Finance Budget Subcommittee for the                                                                              
     Department of Health and Social Services adopted the                                                                       
     attached reports and documents:                                                                                            
                                                                                                                                
     (Division of Legislative Finance)                                                                                          
          HSS Budget Action Worksheet                                                                                         
          HSS Multi-year Agency Totals                                                                                        
          HSS Transaction Compare  FY21 Adjusted Base and                                                                     
          House Sub                                                                                                             
          HSS Transaction Compare      FY21 Governors and                                                                     
          House Sub                                                                                                             
          HSS Wordage Report                                                                                                  
                                                                                                                                
2:10:46 PM                                                                                                                    
                                                                                                                                
Representative  Josephson  asked   about  the  waitlist.  He                                                                    
thought there  was a general  agreement about the  number of                                                                    
people  served. Ms.  Shine replied  that there  were several                                                                    
individuals      on      the      waitlist      for      the                                                                    
Intellectual/Developmental   Disabilities    (IDD)   waiver.                                                                    
Although  the department  submitted a  yearly report  on the                                                                    
status  of   the  waitlist,  in  the   intent  language  the                                                                    
subcommittee  asked for  the department  to look  at whether                                                                    
the individuals  on the waitlist were  100 percent federally                                                                    
funded or whether  they had the economic ability  to pay for                                                                    
services without the waiver.                                                                                                    
                                                                                                                                
Representative   Josephson   had    a   question   regarding                                                                    
behavioral health.  In the previous  year, the FY  19 budget                                                                    
was  about $12  million. In  FY 20,  the legislature  funded                                                                    
$6 million with  the hope  of doing the  1115 waiver  on the                                                                    
other $6 million.  He assumed there was  missing unmet need.                                                                    
He asked if the issue had been discussed.                                                                                       
                                                                                                                                
Ms. Shine  responded that there  was conversation  about the                                                                    
reduction of  the Behavioral  Health Treatment  and Recovery                                                                    
grants from the previous year  and the implementation of the                                                                    
1115 waiver  through the department. The  department came to                                                                    
the  legislature  stating  that many  individuals  who  were                                                                    
previously unable  to bill Medicaid Services  were currently                                                                    
enrolled providers  in Medicaid  and were  billing services.                                                                    
Therefore, the  need was being met.  Regarding the reduction                                                                    
in Behavioral Health Treatment and  Recovery grants, she did                                                                    
not believe there  were many gaps in  the services provided.                                                                    
The proposed budget did not  recommend any sort of reduction                                                                    
in Behavioral Health Treatment and  Recovery grants from the                                                                    
prior to the current year.                                                                                                      
                                                                                                                                
Vice-Chair  Ortiz  referred  to  day  habilitation  services                                                                    
under  the category  of Senior  and Disability  Services. He                                                                    
asked  if  the section  had  received  a significant  dollar                                                                    
reduction over the previous year.  Ms. Shine did not believe                                                                    
so. Day habilitation  services were not part  of the purview                                                                    
of the  previous year's subcommittee  or the  current year's                                                                    
subcommittee.  She was  aware  that  through regulation  the                                                                    
department  had capped  the hours  of services.  The changes                                                                    
were  currently  out  for  comment.   The  funding  for  the                                                                    
specific   waiver   or   service  was   not   discussed   in                                                                    
subcommittee,  nor was  there a  corresponding reduction  in                                                                    
the budget. She  would look into the matter and  get back to                                                                    
the representative.                                                                                                             
                                                                                                                                
Representative Wool  asked about  the 4  positions requested                                                                    
by the department to the  commissioner's office. The Special                                                                    
Assistant position  was accepted  and the 3  other positions                                                                    
were  rejected.  He   asked  Ms.  Shine  to   speak  to  the                                                                    
rejections. He quired  if any of the  positions were related                                                                    
to the Office  of Children's Services (OCS)  and the retired                                                                    
representative from North Pole, Alaska.                                                                                         
                                                                                                                                
Co-Chair   Johnston  responded   in  the   affirmative.  The                                                                    
department  had the  vision of  putting  all child  services                                                                    
under  one  deputy  commissioner  within  OCS  and  Juvenile                                                                    
Justice. Although it approved  of the idea, the subcommittee                                                                    
had  not been  properly  vetted. The  subcommittee had  been                                                                    
uncomfortable   providing  4   high-level  positions   to  a                                                                    
struggling  agency.  She  indicated   she  had  offered  the                                                                    
amendment.  She thought  the agency  should continue  to vet                                                                    
the potential  change first. The special  assistant position                                                                    
would be  there to  assist in the  process. She  argued that                                                                    
before  restructuring the  department, a  full understanding                                                                    
of the existing concerns was needed.                                                                                            
                                                                                                                                
Co-Chair Foster thanked Ms. Shine for her presentation.                                                                         
                                                                                                                                
^DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES                                                                           
                                                                                                                                
2:16:12 PM                                                                                                                    
                                                                                                                                
PAUL LABOLLE, STAFF,  REPRESENTATIVE NEAL FOSTER, introduced                                                                    
himself. He reviewed the subcommittee narrative:                                                                                
                                                                                                                                
     RECOMMENDATIONS: (dollars are in thousands)                                                                                
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of  Transportation  and  Public  Facilities                                                                    
     submits the following  recommended operating budget for                                                                    
     FY2021 to the House Finance Committee:                                                                                     
                                                                                                                              
     Fund Source:                                                                                                               
                                                                                                                                
     Unrestricted General Funds (UGF) $ 157,212.8                                                                               
     Designated General Funds (DGF) $ 105,970.6                                                                                 
     Other Funds $ 355,864.3                                                                                                    
     Federal Funds $ 1,627.2                                                                                                    
     Total $ 620,674.9                                                                                                          
                                                                                                                                
     The  Unrestricted General  Fund  difference (UGF)  from                                                                    
     FY21  Adjusted Base  to the  House Subcommittee  budget                                                                    
     recommendation   is  an   increase   of  $14,060.6   of                                                                    
     Unrestricted  General Funds,  or 9.8%.  Since 2015  the                                                                    
     Department's budget has been reduced by $121,391.8.                                                                        
                                                                                                                              
     Positions:                                                                                                                 
                                                                                                                                
     Permanent Full-time 2,919                                                                                                  
     Permanent Part-time 281                                                                                                    
     Temporary 137                                                                                                              
     Total 3,337                                                                                                                
                                                                                                                              
     BUDGET ACTION:                                                                                                             
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of  Transportation  and  Public  Facilities                                                                    
     reviewed the  FY2021 budget request and  recommends the                                                                    
     following actions:                                                                                                         
                                                                                                                                
     Accept  all of  the Governor's  budget requests  except                                                                    
     the following:                                                                                                             
                                                                                                                                
            Removal of spending authority from Statewide                                                                      
            Administrative Services $507.1 DGF                                                                                  
            Removal of spending authority from Statewide                                                                      
             Procurement $325.0 DGF                                                                                             
                                                                                                                                
     SUBCOMMITTEE ACTION:                                                                                                       
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of  Transportation  and  Public  Facilities                                                                    
     recommends  that  the   committee  take  the  following                                                                    
     actions:                                                                                                                   
                                                                                                                                
            Restore non-UGF travel reductions from FY20                                                                       
             $97.2 DGF, $922.0 Other, and 4.0 Fed.                                                                              
            Restore Marine Highway Funding $11,312.9 UGF                                                                      
             and $7,425.7 DGF                                                                                                   
                                                                                                                                
     ATTACHED REPORTS:                                                                                                          
                                                                                                                                
     The House Finance Budget Subcommittee for the                                                                              
     Department of Transportation and Public Facilities                                                                         
     attached the following reports:                                                                                            
                                                                                                                                
        1. Budget Action Sheet                                                                                                
        2. Agency Totals                                                                                                      
        3. Transaction Compare FY21AdjBase                                                                                    
        4. Transaction Compare FY21Gov                                                                                        
                                                                                                                                
Mr.  Labolle provided  additional information  regarding the                                                                    
subcommittee report.  He elaborated that the  restoration of                                                                    
$11.3  million  UGF  to the  Alaska  Marine  Highway  System                                                                    
(AMHS) to further restore service  was  a  member  amendment                                                                    
based  on  a scenario  provided  by  the department  to  the                                                                    
subcommittee.  Because  of  the  change  and  based  on  the                                                                    
department's   recommendation,   the   subcommittee   denied                                                                    
$832,000 in  reductions to  administration and  support. The                                                                    
funds were  marine highway funds. He  explained that because                                                                    
of the increased  activity in the AMHS,  more marine highway                                                                    
funds  would be  generated  and would  be  available to  the                                                                    
department.                                                                                                                     
                                                                                                                                
Mr.  Labolle reported  that the  subcommittee also  restored                                                                    
non-UGF  travel   reductions  from  FY 20.   The  department                                                                    
attested  that approximately  $900,000 was  transferred from                                                                    
other  components  to   meet  mission-critical  travel.  The                                                                    
action should  allow more  funds to  remain in  the budgeted                                                                    
components and represented a zero increase in UGF spending.                                                                     
                                                                                                                                
Representative  Wool  asked  if   $1.6  million  in  federal                                                                    
funding was for the  Department of Transportation and Public                                                                    
Facilities  (DOT).  Mr.  Labolle  responded  that  the  vast                                                                    
majority  of federal  funds going  to DOT  came through  the                                                                    
capital budget with very little in the operating budget.                                                                        
                                                                                                                                
^OFFICE OF GOVERNOR                                                                                                           
                                                                                                                                
2:19:55 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster invited his staff to the table.                                                                                 
                                                                                                                                
RYAN JOHNSTON,  STAFF, REPRESENTATIVE NEAL FOSTER,  read the                                                                    
subcommittee report for the Office of the Governor:                                                                             
                                                                                                                                
     RECOMMENDATIONS:                                                                                                           
                                                                                                                                
     The House  Finance Budget  Subcommittee for  the Office                                                                    
     of  the  Governor  submits  the  following  recommended                                                                    
     operating  budget  for  FY2021  to  the  House  Finance                                                                    
     Committee:                                                                                                                 
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
                                                                                                                                
     Unrestricted General Funds (UGF) $21,969.1                                                                                 
     Designated General Funds (DGF) $0.0                                                                                        
     Other Funds $4,021.8                                                                                                       
     Federal Funds $229.0                                                                                                       
     Total $26,219.9                                                                                                            
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY21                                                                    
     Adjusted   Base  to   the  House   Subcommittee  budget                                                                    
     recommendation  is a  reduction of  $125.0 thousand  of                                                                    
     Unrestricted General Funds,  which is 0.5 percent below                                                                    
     FY21 Adjusted Base.                                                                                                        
                                                                                                                                
     Positions:                                                                                                                 
                                                                                                                                
     Permanent Full-time 150                                                                                                    
     Permanent Part-time 0                                                                                                      
     Temporary 23                                                                                                               
     Total 173                                                                                                                  
                                                                                                                                
     BUDGET ACTION:                                                                                                             
                                                                                                                                
     The House  Finance Budget  Subcommittee for  the Office                                                                    
     of the Governor reviewed  the FY2021 budget request and                                                                    
     recommends the following actions:                                                                                          
                                                                                                                                
     Accept the  Office of  the Governor's  budget proposal,                                                                    
     which includes these highlights:                                                                                           
                                                                                                                                
            Transfer International Trade Support to                                                                           
             Department of Commerce, Community, and Economic                                                                    
             Development  with   one  position   for  better                                                                    
             alignment with  the program's  purpose, -$125.0                                                                    
             UGF                                                                                                                
            Reduce authority in the Office of Management                                                                      
             and Budget to align with anticipated revenue                                                                       
             and expenditures, -$150.0 Inter Agency Receipts                                                                    
                                                                                                                                
Representative  Wool asked  if Mr.  Johnston could  speak to                                                                    
the number of  positions within the Office  of the Governor.                                                                    
He   wondered   about   the  numbers   from   the   previous                                                                    
administration.   Mr.    Johnston   could   get    back   to                                                                    
Representative Wool with the information.                                                                                       
                                                                                                                                
Representative  Josephson indicated  the administration  had                                                                    
cut  Judiciary's budget  and  the  legislature's budget  for                                                                    
FY 21. He wondered if it was  true that the budgets were not                                                                    
forwarded  as delivered.  Mr. Johnston  responded, "That  is                                                                    
correct."                                                                                                                       
                                                                                                                                
Co-Chair Johnston referred to  the reduced authority for OMB                                                                    
for interagency  receipts. She  wondered if  the legislature                                                                    
and Judiciary had the same  costs listed in their respective                                                                    
budgets.                                                                                                                        
                                                                                                                                
KELLY  CUNNINGHAM,  ANALYST, LEGISLATIVE  FINANCE  DIVISION,                                                                    
replied  that   the  items  were  separate   from  what  was                                                                    
currently being  discussed. The item  was simply  a clean-up                                                                    
measure.                                                                                                                        
                                                                                                                                
^DEPARTMENT OF FISH AND GAME                                                                                                  
                                                                                                                                
2:24:27 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster invited  Vice-Chair  Ortiz's  staff to  the                                                                    
table.                                                                                                                          
                                                                                                                                
LIZ HARPHOLD, STAFF, REPRESENTATIVE  DAN ORTIZ, reviewed the                                                                    
subcommittee report:                                                                                                            
                                                                                                                                
     RECOMMENDATIONS:                                                                                                           
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of  Fish and Game recommends  that the House                                                                    
     Finance  Committee  accept   the  Department  Fish  and                                                                    
     Game's FY21 budget:                                                                                                        
                                                                                                                                
     The numbers-only budget with amendment recommendations                                                                     
     totals (dollars are in thousands):                                                                                         
                                                                                                                                
     Fund Source:                                                                                                               
          Unrestricted General Funds (UGF) $51,491.8                                                                            
         Designated General Funds (DGF) $14,257.0                                                                               
          Other Funds $67,403.0                                                                                                 
          Federal Funds $70,126.3                                                                                               
          Total $203,269.1                                                                                                      
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY21                                                                    
     Adjusted   Base   to   the  FY21   House   Subcommittee                                                                    
     Recommended  budget is  a  reduction  of $5.9  thousand                                                                    
     Unrestricted General Funds which  is less than 1% below                                                                    
     FY21 Adjusted Base.                                                                                                        
                                                                                                                                
     Positions:                                                                                                                 
          Permanent Full-time 836                                                                                               
          Permanent Part-time 606                                                                                               
          Temporary 8                                                                                                           
          Total 1450                                                                                                            
                                                                                                                                
     Budget Actions:                                                                                                            
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of  Fish & Game  reviewed the  FY2021 budget                                                                    
     request, including  amendments, and took  the following                                                                    
     actions:                                                                                                                   
                                                                                                                                
     The  Governor submitted  13  budget  action items.  The                                                                    
     House  Finance Subcommittee  accepted  1  of them.  The                                                                    
     House  Finance Subcommittee  rejected  11  of them  and                                                                    
     amended 1.                                                                                                                 
                                                                                                                                
     The item the House Finance Subcommittee accepted is:                                                                       
     Replace  funding sources  within the  State Subsistence                                                                    
     Research   and  Monitoring   Section   to  align   with                                                                    
     anticipated revenue and expenditures                                                                                       
                                                                                                                                
     The item the House  Finance Subcommittee accepted after                                                                    
     amending:                                                                                                                  
                                                                                                                                
     Reduce  support  for  License  Modernization  in  Sport                                                                    
     Fisheries  division  by  $100.0   UGF  instead  of  the                                                                    
     originally proposed $250.0 UGF reduction.                                                                                  
                                                                                                                                
     The items the House Finance Subcommittee rejected are:                                                                     
        • 8 items related to reductions totaling $1,124.8                                                                     
          in the Division of Commercial Fisheries                                                                               
        • 1 item related to a fund source change within the                                                                   
          Division of Wildlife                                                                                                  
        • 1 item to reduce travel funding for Boards of                                                                       
         Fisheries and Game supplemental meetings                                                                               
        • 1 item to reduce funding in the Habitat Section                                                                     
                                                                                                                                
     Subcommittee Amendments:                                                                                                   
                                                                                                                                
     The  House Finance  Subcommittee adopted  the following                                                                    
     budget amendment:                                                                                                          
        • Add $94.1 UGF to the Division of Commercial                                                                         
          Fisheries  Central Region for the Prince William                                                                      
          Sound otolith program.                                                                                                
                                                                                                                                
     Attached Reports:                                                                                                          
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of  Fish  and   Game  adopts  the  attached                                                                    
     reports:                                                                                                                   
        1. Budget Action Worksheet                                                                                            
        2. Wordage Report                                                                                                     
        3. Operating Budget Transaction Compare between                                                                       
          21AdjBase to HouseSub                                                                                                 
        4. Operating Budget Transaction Compare between                                                                       
          21Gov to HouseSub                                                                                                     
        5. Multi-year Agency Totals                                                                                           
                                                                                                                                
^DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                                                                     
                                                                                                                                
2:27:44 PM                                                                                                                    
                                                                                                                                
LIZ HARPHOLD, STAFF, REPRESENTATIVE DAN ORTIZ, reviewed the                                                                     
subcommittee report for Department of Environmental                                                                             
Conservation:                                                                                                                   
                                                                                                                                
     Recommendations:                                                                                                           
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of Environmental  Conservation submits  the                                                                    
     following  recommended operating  budget for  FY2021 to                                                                    
     the House Finance Committee:                                                                                               
                                                                                                                                
     Fund Source: (in thousands of dollars)                                                                                     
                                                                                                                                
          Unrestricted General Funds (UGF) $15,471.0                                                                            
         Designated General Funds (DGF) $25,294.2                                                                               
          Other Funds $17,677.4                                                                                                 
          Federal Funds $24,356.8                                                                                               
          Total $82,799.4                                                                                                       
                                                                                                                                
     There  is no  difference in  Unrestricted General  Fund                                                                    
     use  from   FY21  Adjusted  Base  to   the  FY21  House                                                                    
     Subcommittee budget.                                                                                                       
                                                                                                                                
     Positions:                                                                                                                 
                                                                                                                                
          Permanent Full-time 485                                                                                               
          Permanent Part-time 0                                                                                                 
          Temporary 1                                                                                                           
          Total 486                                                                                                             
                                                                                                                                
     Budget Actions:                                                                                                            
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of  Environmental Conservation  reviewed the                                                                    
     FY2021 budget  request, including amendments,  and took                                                                    
     the following actions:                                                                                                     
                                                                                                                                
     The  Governor  submitted  7 budget  action  items.  The                                                                    
     House Finance  Subcommittee accepted 3 of  these items.                                                                    
     The  House Finance  Subcommittee  rejected  4 of  these                                                                    
     items.                                                                                                                     
                                                                                                                                
     The items the House Finance Subcommittee accepted are:                                                                     
        • Delete an Accountant IV position                                                                                    
        • Add I/A authority to Spill Prevention and                                                                           
          Response                                                                                                              
     • Add Federal Receipt Authority for the Alaska                                                                           
          Pollutant Discharge Elimination Systems                                                                               
          Permitting and Compliance Program                                                                                     
                                                                                                                                
     The items the House Finance Subcommittee rejected are:                                                                     
        • A fund source for commercial shellfish testing                                                                      
        • Eliminating the dairy program                                                                                       
        • Reduce authority, along with 7 PCNs, in the Spill                                                                   
          Prevention and Response appropriation                                                                                 
        • A fund source change within the Division of Water                                                                   
          Quality, Infrastructure Support and Financing                                                                         
                                                                                                                                
     Subcommittee Amendments:                                                                                                   
                                                                                                                                
     The House Finance Subcommittee adopted the following                                                                       
     budget amendment:                                                                                                          
        • Add $3,426.0 Ocean Ranger (1205) fund to restore                                                                    
          the Ocean Ranger program                                                                                              
      • Intent language requesting the Division of                                                                            
          Environmental Health rename the Dairy Program to                                                                      
          Dairy Safety.                                                                                                         
                                                                                                                                
     Attached Reports:                                                                                                          
                                                                                                                                
     The House Finance Budget Subcommittee for the                                                                              
    Department of Environmental Conservation adopts the                                                                         
     attached reports:                                                                                                          
        1) Budget Action Worksheet                                                                                            
        2) Wordage Report                                                                                                     
        3) Operating Budget Transaction Compare between                                                                       
          21AdjBase to HouseSub                                                                                                 
        4) Operating Budget Transaction Compare between                                                                       
          21Gov to HouseSub                                                                                                     
          Multi-year Agency Totals                                                                                              
                                                                                                                                
Representative  Sullivan-Leonard   asked  for  clarification                                                                    
around  the  reduction of  the  Ocean  Ranger position.  She                                                                    
asked if the cost associated  with the position was $342,000                                                                    
and  whether   they  were  designated  general   fund  (DGF)                                                                    
dollars. She was  trying to determine if the  amount was for                                                                    
one or  two positions.  Ms. Harpold  indicated she  needed a                                                                    
minute to consult with Mr. Partlow.                                                                                             
                                                                                                                                
2:31:14 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:32:03 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Ms.  Harpold responded  that the  $3.4 million  served as  a                                                                    
contract payment for the Ocean  Ranger program rather than a                                                                    
position within the department.                                                                                                 
                                                                                                                                
Representative  Josephson clarified  that the  Ocean Rangers                                                                    
were  contractors rather  than employees  of the  state. Ms.                                                                    
Harpold responded, "That's correct."                                                                                            
                                                                                                                                
Representative  Josephson  clarified that  the  subcommittee                                                                    
restored  the Ocean  Ranger account  for the  purpose of  an                                                                    
Ocean  Ranger  Program. He  asked  if  he was  correct.  Ms.                                                                    
Harpold responded affirmatively.                                                                                                
                                                                                                                                
Representative Josephson  asked about  the elimination  of 7                                                                    
positions. He  wondered if they  were unfilled  positions in                                                                    
the Division of  Spill Prevention and Response  (SPAR) or if                                                                    
they were simply not needed.                                                                                                    
                                                                                                                                
MICHAEL   PARTLOW,  FISCAL   ANALYST,  LEGISLATIVE   FINANCE                                                                    
DIVISION, responded that 5 of  the positions were vacant and                                                                    
2  were  filled.  The  purpose  of  the  reduction  for  the                                                                    
positions  had to  do with  their funding  source    the oil                                                                    
hazardous waste fund.  The fund was being  drawn down faster                                                                    
than it could be replenished.  The fund would likely run out                                                                    
by 2024 if a reduction in positions was not made.                                                                               
                                                                                                                                
Representative Josephson  asked if  Mr. Partlow  was talking                                                                    
about  the tax  on throughput,  the $.05  cents per  barrel,                                                                    
that  was being  depleted. Rather  than fixing  the program,                                                                    
the department  was proposing to  eliminate it.  Mr. Partlow                                                                    
replied that  the reasoning  for the  reduction was  that at                                                                    
current  spending levels,  the fund  balance would  go down.                                                                    
Debate around increasing  revenue for the fund  did not come                                                                    
up.                                                                                                                             
                                                                                                                                
Representative Wool  asked about the  subcommittee rejecting                                                                    
the  fund  source  for   commercial  shellfish  testing.  He                                                                    
assumed that  they rejected  half of the  fund source    the                                                                    
half  provided  by  industry. He  wondered  if  the  state's                                                                    
portion  doubled. He  asked for  clarification. Ms.  Harpold                                                                    
replied that the action the  subcommittee took was to reject                                                                    
the governor's proposed item in  its entirely which included                                                                    
50 percent the  state would cover and 50  percent in program                                                                    
receipts. Therefore,  the program  would be brought  back to                                                                    
how it had been funded in previous years.                                                                                       
                                                                                                                                
^DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT                                                                                
                                                                                                                                
2:36:20 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster invited  Vice-Chair  Ortiz's  staff to  the                                                                    
table to  review the subcommittee report  the for Department                                                                    
of Education and Early Development (DEED).                                                                                      
                                                                                                                                
CAROLINE  HAMP, STAFF,  REPRESENTATIVE  DAN ORTIZ,  reviewed                                                                    
the subcommittee report:                                                                                                        
                                                                                                                                
     Recommendations:                                                                                                           
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of  Education and Early  Development submits                                                                    
     the following operating budget for  FY2021 to the House                                                                    
     Finance Committee:                                                                                                         
                                                                                                                              
          Fund Source: (dollars are in thousands)                                                                               
                                                                                                                                
               Unrestricted General Funds (UGF) $50,902.1                                                                       
               Designated General Funds (DGF) $25,669.6                                                                         
               Other Funds $36,425.0                                                                                            
               Federal Funds $245,512.1                                                                                         
               Total $358,508.8                                                                                                 
                                                                                                                                
     The total  fund difference  from FY21 Adjusted  Base to                                                                    
     the  House  Subcommittee  budget is  -$31,847.8,  or  a                                                                    
     decrease  of   8.2%.  The  Unrestricted   General  Fund                                                                    
     difference  from  FY21  Adjusted   Base  to  the  House                                                                    
     Subcommittee  budget is  $5,529.0,  or  an increase  of                                                                    
     12.2%.  The discrepancy  between total  fund difference                                                                    
     and UGF  difference is primarily  from the  fund source                                                                    
     swap for Mt. Edgecumbe, as described below.                                                                                
                                                                                                                                
     The  total fund  difference  from  the FY21  Governor's                                                                    
     budget to  the House Subcommittee budget  is $570.6, or                                                                    
     an increase  of 0.2  percent. The  Unrestricted General                                                                    
     Fund difference from the FY21  Governor's budget to the                                                                    
     House  Subcommittee  budget  is   also  $570.6,  or  an                                                                    
     increase of 1.1 percent.                                                                                                   
                                                                                                                              
          Positions:                                                                                                            
                                                                                                                                
               Permanent Full-Time 268                                                                                          
               Permanent Part-Time 14                                                                                           
               Temporary 2                                                                                                      
               Total 284                                                                                                        
                                                                                                                              
     Budget Actions:                                                                                                            
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of Education  and Early Development reviewed                                                                    
     the  FY2021  budget  requests  from  the  Governor  and                                                                    
     member  amendments, and  submits the  following actions                                                                    
     for consideration:                                                                                                         
                                                                                                                                
     Governor's Budget Action Items                                                                                             
                                                                                                                                
     The  subcommittee   adopted  16  budget   action  items                                                                    
     proposed by the Governor including:                                                                                        
                                                                                                                                
        1) Outsource the Federal Family Education Loan                                                                        
           Program Servicing with an elimination of six                                                                         
           positions and a decrement of $586.3 in inter-                                                                        
           agency receipts                                                                                                      
                                                                                                                                
        2) Replace the funding source for Mount Edgecumbe                                                                     
           Boarding School from Public School Trust Fund to                                                                     
           General Fund                                                                                                         
                                                                                                                                
        3) Transition the Public School Trust Fund to the                                                                     
           language section of the appropriation bill                                                                           
                                                                                                                                
        4) Add two residential programs for North Slope                                                                       
           Borough School District and Lower Yukon School                                                                       
           District with an increment of $900.2 in                                                                              
           Unrestricted General Funds                                                                                           
                                                                                                                                
     The  subcommittee rejected  three  budget action  items                                                                    
     proposed by the Governor:                                                                                                  
                                                                                                                                
          1) Authority  for the State Board  of Education to                                                                    
          hold  additional  in-person meetings;  a  rejected                                                                    
          increment of $137.0 in Unrestricted General Funds                                                                     
                                                                                                                                
          2)  Transfer Parents  as Teachers  program to  the                                                                    
          Department  of  Health   and  Social  Services;  a                                                                    
          rejected  decrement  of   $474.7  in  Unrestricted                                                                    
          General Funds                                                                                                         
                                                                                                                                
          3)  Eliminate  the  Online  with  Libraries  video                                                                    
          conferencing  system;  a   rejected  decrement  of                                                                    
          $232.9 in Unrestricted General Funds                                                                                  
                                                                                                                                
     Wordage Intent:  The subcommittee adopted  one member's                                                                    
     amendment regarding intent language:                                                                                       
     1)  It  is  the  intent of  the  legislature  that  the                                                                    
     Department of Education  and Early Development evaluate                                                                    
     cost-efficiency  measures that  preserve access  to the                                                                    
     Alaska   Online    with   Libraries    (OWL)   Program;                                                                    
     considering  the   use  of  alternative   equipment  or                                                                    
     technologies that  accommodate equitable access  to the                                                                    
     video  conference  system,  while  saving  unrestricted                                                                    
     general funds.                                                                                                             
                                                                                                                                
     It  is also  the  intent of  the  legislature that  the                                                                    
     Department of  Education and Early  Development consult                                                                    
     with  all users  of  the Alaska  Online with  Libraries                                                                    
     (OWL) Program  to evaluate implications  of eliminating                                                                    
     the  video  conference   services.  The  Department  of                                                                    
     Education and  Early Development  shall ensure  that if                                                                    
     the  Alaska  Online  with Libraries  (OWL)  Program  is                                                                    
     eliminated,  then alternative  equipment or  technology                                                                    
     is  provided. The  Department  of  Education and  Early                                                                    
     Development  shall  prepare  a report  summarizing  the                                                                    
     results  from  those  consultations  and  the  proposed                                                                    
     cost-efficiency measures  and submit the report  to the                                                                    
     Finance   co-chairs,   and  the   Legislative   Finance                                                                    
     Division on or  before January 1, 2021,  and notify the                                                                    
     legislature that the report is available                                                                                   
                                                                                                                                
     Committee Discussion:                                                                                                      
                                                                                                                                
          The  subcommittee  did  not take  action  on  this                                                                    
          particular item but would like  to bring it to the                                                                    
          attention  of  the  House Finance  Committee.  The                                                                    
          subcommittee is concerned about  the ending of the                                                                    
          two-year  $6  million   grants  for  Pre-K,  which                                                                    
          served  9 communities  and 812  students. Although                                                                    
          no  formal  action was  taken  in  regards to  the                                                                    
          funding, the subcommittee  hopes the House Finance                                                                    
          Committee will  evaluate the importance of  the $6                                                                    
          million in  Pre-K grants and  the loss  of service                                                                    
          without it.                                                                                                           
                                                                                                                              
     Attached Reports:                                                                                                        
                                                                                                                              
          The  House  Finance  Budget Subcommittee  for  the                                                                    
          Department  of  Education  and  Early  Development                                                                    
          adopts the attached reports:                                                                                          
                                                                                                                                
        Multi-year Agency Totals                                                                                                
             Transaction Comparison  between FY20  Adj. Base                                                                  
             and House Sub.                                                                                                     
             Transaction Comparison  between Gov.  Amend and                                                                  
             House Sub.                                                                                                         
            Wordage Report                                                                                                    
            Subcommittee Amendments (in form of BA Sheet)                                                                     
                                                                                                                                
Representative Josephson  asked if the pre-K  grant was left                                                                    
unfunded because of  SB 6 [Legislation introduced  in 2020                                                                      
Short Title: Pre-K/Elem ED  Programs/Funding; Reading] and a                                                                    
grander plan. Ms. Hamp responded  that it was 2-year funding                                                                    
for pre-K grants. The year ended in the prior year.                                                                             
                                                                                                                                
Representative  Josephson   referred  to  the   second  page                                                                    
regarding the transition of the  Public School Trust Fund to                                                                    
the language section.  He queried the impact  of the change.                                                                    
Ms. Hamp  responded that the  change was for  efficiency and                                                                    
logistics. She  indicated that the Public  School Trust Fund                                                                    
was managed  through the Department of  Revenue (DOR). Every                                                                    
time DEED or Mt. Edgecombe  School had to make a transaction                                                                    
the  process   was  cumbersome.   They  had   to  coordinate                                                                    
frequently with DOR  and could not make a  one-time draw for                                                                    
what they needed.                                                                                                               
                                                                                                                                
2:41:14 PM                                                                                                                    
                                                                                                                                
Representative  Wool noted  that  the subcommittee  rejected                                                                    
the  transfer  of  the Parents-as-Teachers  Program  to  the                                                                    
Department of  Health and  Social Services  (DHSS). However,                                                                    
DHSS  accepted the  transfer from  DEED. He  suggested there                                                                    
was a stand-off and was unclear what would happen.                                                                              
                                                                                                                                
Vice-Chair Ortiz  responded that  he would not  describe the                                                                    
situation as a "Stand-off." A  decision could be rendered by                                                                    
the  full House  Finance  Committee. He  was certain  things                                                                    
could be  worked out.  The member  that brought  forward the                                                                    
idea of rejecting  the transfer was concerned  that once the                                                                    
program was  transferred to  DHSS, there  was a  $40,000 fee                                                                    
that would  be added  to the  administration of  the program                                                                    
under  DHSS.  He offered  that  when  DEED administered  the                                                                    
program  there was  not an  administration fee.  Also, there                                                                    
was a  general notion that  the delivery of  the educational                                                                    
program would  be better suited  within DEED.  He reiterated                                                                    
that the entities would work things out.                                                                                        
                                                                                                                                
^DEPARTMENT OF PUBLIC SAFETY                                                                                                  
                                                                                                                                
2:43:13 PM                                                                                                                    
                                                                                                                                
JOE BYRNES,  STAFF, REPRESENTATIVE BART LEBON,  reviewed the                                                                    
subcommittee narrative:                                                                                                         
                                                                                                                              
     Recommendations:                                                                                                           
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department   Public   Safety  submits   a   recommended                                                                    
     operating  budget  for  FY2021  to  the  House  Finance                                                                    
     Committee as follows:                                                                                                      
                                                                                                                                
          Fund Source: (dollars are in thousands)                                                                               
               Unrestricted General Funds (UGF) $179,254.9                                                                      
               Designated General Funds (DGF) $8,737.9                                                                          
               Other Funds $13,209.5                                                                                            
               Federal Funds $27,671.3                                                                                          
               Total $228,873.6                                                                                                 
                                                                                                                                
          Positions:                                                                                                            
               FY 20 Management Plan Budgeted Total 853                                                                         
               FY 21 Subcommittee 903                                                                                           
               Difference 51                                                                                                    
               Difference by Percentage 6.3                                                                                     
                                                                                                                                
     Budget Action:                                                                                                             
                                                                                                                                
     The  House  Finance   Subcommittee  on  the  Department                                                                    
     Public   Safety  Budget   held   seven  meetings.   The                                                                    
     Subcommittee  reviewed  and  acted  on  the  Governor's                                                                    
     FY2021 budget request, with the following highlights:                                                                      
                                                                                                                                
          Reduced   spending   by    $2,764.4   (-1.2%)   in                                                                  
          Unrestricted   General  Funds   from  the   FY  21                                                                    
          Governor's request                                                                                                    
          Added 15 State Troopers, 5 Court Services                                                                           
          Officers,  3 Aircraft  Pilots, and  8Technical and                                                                    
          Administrative   Staff   Positions   to   increase                                                                    
          staffing and  operational capacity in  rural areas                                                                    
          with  new State  Troopers  posted  in Ambler  (2),                                                                    
          Anchor  Point  (2),  Bethel (1),  Dillingham  (1),                                                                    
          Emmonak  (1),  Glennallen (1),  Kotzebue  (2),Nome                                                                    
          (1),  St.  Mary's  (1),   St.  Michaels  (2),  and                                                                    
          Unalakleet (1) ($5,466.9 UGF)                                                                                         
          Added $1,000.0 (UGF) for VPSO grantees                                                                              
                                                                                                                                
     The Subcommittee recommends accepting the Governor's                                                                       
     FY2021 request and highlights the following changes:                                                                       
                                                                                                                                
          Denying the Governor's requested added authority                                                                    
          in Alaska  State Troopers appropriation  to reduce                                                                    
          vacancy -$2,733.9 UGF.                                                                                                
          Backing out -$1,480.5 UGF in one-time startup                                                                       
          costs  associated  with  the 15  additional  state                                                                    
          troopers  for rural  areas to  be absorbed  by the                                                                    
          Department  with  the  anticipated  delay  in  the                                                                    
          recruitment  and hiring  of the  new positions  in                                                                    
          FY21.                                                                                                                 
          Establishing a new allocation within the Alaska                                                                     
          State Troopers appropriation  for Training Academy                                                                    
          Recruit Salaries  to provide  greater transparency                                                                    
          with  funds previously  expended  from the  Alaska                                                                    
          State Troopers Detachments  allocation for trooper                                                                    
          recruit salaries and benefits.                                                                                        
          Restoring $250.0 UGF for State support of the                                                                       
          Alaska Wing  Civil Air  Patrol allowing  the State                                                                    
          to  leverage   additional  resources   to  support                                                                    
          search  and   rescue  efforts   in  the   form  of                                                                    
          volunteer  hours  and  adding intent  language  to                                                                    
          strengthen the  liaison between the State  and the                                                                    
          Civil Air Patrol.                                                                                                     
          Adding  intent  language  for  the  Department  of                                                                  
          Public Safety to fill  vacant positions and reduce                                                                    
          overtime costs  in order  to better  manage within                                                                    
          the  authorized budget  and  to  provide a  report                                                                    
          that  details  monthly  hiring and  attrition,  as                                                                    
          well as overtime costs and contributing factors.                                                                      
          Adding  intent  language  for  the  Department  of                                                                  
          Public Safety to prioritize  the deployment of law                                                                    
          enforcement resources to  non-urbanized areas that                                                                    
          lack organized governments.                                                                                           
          Adding  intent  language  for  the  Department  of                                                                  
          Public Safety to  implement the recommendations of                                                                    
          the  2019-2020   Village  Public   Safety  Officer                                                                    
          (VPSO) Working Group.                                                                                                 
                                                                                                                                
     Attached Reports:                                                                                                          
                                                                                                                                
     The House Finance Budget Subcommittee for the                                                                              
     Department of Public Safety adopts the attached                                                                            
     reports:                                                                                                                   
                                                                                                                              
     2021 Legislative Finance Division Reports        House                                                                     
     Structure                                                                                                                  
                                                                                                                                
        1. Agency  Totals        FY2021   Operating   Budget                                                                  
          (Attachment A)                                                                                                        
        2. Transaction Compare between Adjusted  Base (21Adj                                                                  
          Base)  and House  Subcommittee (HSub)  (Attachment                                                                    
          B)                                                                                                                    
        3. Transaction Compare between Governor  (21Gov) and                                                                  
          House Subcommittee (HSub)(Attachment C)                                                                               
        4. Wordage  Report       FY2021   Operating   Budget                                                                  
          (Attachment D)                                                                                                        
                                                                                                                                
2:46:42 PM                                                                                                                    
                                                                                                                                
Representative Carpenter  asked how $250,000 was  not paying                                                                    
for  volunteer hours.  He did  not think  $250,000 would  be                                                                    
needed for  volunteers. Mr. Byrnes responded  that the state                                                                    
support  for  the  Civil  Air Patrol  paid  for  hanger  and                                                                    
maintenance  costs  and  pilot and  aircraft  readiness.  He                                                                    
continued that  while the  Civil Air Patrol  was made  up of                                                                    
volunteers,  overhead  costs   required  a  funding  source.                                                                    
Historically, the state had provided support.                                                                                   
                                                                                                                                
Representative Wool  asked whether a recruit  salary was for                                                                    
a  person just  starting in  the  department or  a bonus  to                                                                    
entice  someone to  go to  work  for the  state. Mr.  Byrnes                                                                    
responded that  as the department was  currently structured,                                                                    
recruits  were paid  out of  the detachment  allocation. The                                                                    
restructure added a new  allocation specifically for recruit                                                                    
salaries  to show  that while  individuals were  in the  law                                                                    
enforcement academy in Sitka, they  were being paid out of a                                                                    
different set of funds.                                                                                                         
                                                                                                                                
Representative  Wool queried  that it  only applied  to when                                                                    
recruits were  enrolled in  the academy  and not  working in                                                                    
the field. Mr. Byrnes responded in the affirmative.                                                                             
                                                                                                                                
Representative  Sullivan-Leonard   asked  for   more  detail                                                                    
regarding  the  $1 million  UGF  for  Village Public  Safety                                                                    
Officer (VPSO) grantees. She wondered  what other funds were                                                                    
being used  for the  VPSO program.  Mr. Byrnes  replied that                                                                    
the  appropriation  would  be  additional  funding  for  the                                                                    
grantees.  The  FY 21  adjusted  base  figure for  the  VPSO                                                                    
Program   was   $11.6   million.    The   $1   million   the                                                                    
representative asked about was  an additional $1 million for                                                                    
the  VPSO  grantees.  He  continued  that  inside  the  VPSO                                                                    
working  group  recommendations,   they  wanted  to  restore                                                                    
funding  to FY  18  levels  which would  bring  back the  $3                                                                    
million  vetoed  from the  governor's  budget  in the  prior                                                                    
year. The amendment restored $1 million of the $3 million.                                                                      
                                                                                                                                
2:49:46 PM                                                                                                                    
                                                                                                                                
Representative  Sullivan-Leonard asked  about other  funding                                                                    
sources  for   the  VPSO  program.   Mr.  Byrnes   asked  if                                                                    
Representative  Sullivan-Leonard  was   referring  to  other                                                                    
funding sources such  as federal or local  funds. He thought                                                                    
her  question  was better  directed  to  the department.  He                                                                    
indicated that the funding from  the state that went towards                                                                    
positions was granted to organizations  that hired VPSOs. He                                                                    
could reach out to the department for more specifics.                                                                           
                                                                                                                                
Representative  Sullivan-Leonard  wondered   how  many  VPSO                                                                    
positions  were still  open. Mr.  Byrnes would  have to  get                                                                    
back   to    Representative   Sullivan-Leonard    with   the                                                                    
information.                                                                                                                    
                                                                                                                                
Vice-Chair  Ortiz asked  if the  subcommittee discussed  the                                                                    
$700,000 increment suggested by  the department to help with                                                                    
the  consolidation   of  9-1-1  dispatch  services   in  the                                                                    
Anchorage  area. Mr.  Byrnes responded  that there  had been                                                                    
some  discussion. The  department informed  the subcommittee                                                                    
that  the   amount  was   for  the   second  phase   of  the                                                                    
consolidation  to create  an emergency  communication center                                                                    
in  Anchorage. There  had been  previous capital  funding to                                                                    
build out the  facility. The $700,000 was  to fund positions                                                                    
for the  facility. The department also  indicated that there                                                                    
were  additional capabilities  that  would  result from  the                                                                    
consolidation and the  use of the enhanced  9-1-1 service. A                                                                    
note of concern  brought up by a member was  making sure the                                                                    
department was working with the  telecom utilities to ensure                                                                    
everything  was  paired  and  ready.  There  were  no  other                                                                    
concerns raised in the subcommittee.                                                                                            
                                                                                                                                
Vice-Chair Ortiz assumed that  the request for an additional                                                                    
$700,000  fell  within  the   UGF  appropriation  of  $8.737                                                                    
million. Mr. Byrnes wondered if  Vice-Chair Ortiz was asking                                                                    
how much was funded from  UGF for the item. Vice-Chair Ortiz                                                                    
asked  if the  item  was  tied to  UGF  dollars. Mr.  Byrnes                                                                    
responded in  the affirmative. He  indicated the  amount was                                                                    
$872,800  UGF. Vice-Chair  Ortiz  restated  the number.  Mr.                                                                    
Burnes agreed with the figure.                                                                                                  
                                                                                                                                
Co-Chair Johnston  noted the department  had a  large number                                                                    
of new employees who would need  to be trained. She asked if                                                                    
the committee had discussed the  time it took to recruit and                                                                    
train employees and whether members  had considered that not                                                                    
all  the positions  might get  filled. Mr.  Byrnes responded                                                                    
that it was one of  the considerations when the decision was                                                                    
made to  back out  the one-time cost  for the  Troopers. The                                                                    
thought process was that many  of the positions would take a                                                                    
significant  amount  of time  to  fill.  The one-time  costs                                                                    
could  be covered  through the  time that  it might  take to                                                                    
fill  the positions.  However,  the  department believed  it                                                                    
could fill the positions relatively quickly.                                                                                    
                                                                                                                                
Representative Merrick asked if  the VPSO Program lapsed any                                                                    
funding in  the prior  year. Mr.  Byrnes indicated  he would                                                                    
take a minute to look at his notes for the number.                                                                              
                                                                                                                                
2:55:47 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:00:41 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Mr. Byrnes answered that the  department informed him of the                                                                    
lapsed  funding in  FY 19  of about  $3.6 million.  However,                                                                    
grantees had raised concern about  how the program was being                                                                    
administered  and  how  funding  had  been  distributed.  In                                                                    
reference   to  her   previous   question,  the   department                                                                    
currently  had 33  VPSOs and  8  individuals hired  awaiting                                                                    
training.  The  state  positions were  not  vacant  position                                                                    
control numbers  that could be tracked.  Rather, how funding                                                                    
was dispersed to the grantees could be traced.                                                                                  
                                                                                                                                
Representative  Merrick asked  what it  would cost  to train                                                                    
the  8 VPSOs.  Mr. Byrnes  would get  back the  her with  an                                                                    
amount.                                                                                                                         
                                                                                                                                
Representative  Merrick suspected  8  VPSOs  were less  than                                                                    
$3.6 million. She did not see  the need for an additional $1                                                                    
million.                                                                                                                        
                                                                                                                                
Co-Chair  Johnston  asked  about  the  lapsed  funding.  She                                                                    
wondered if  there was concern about  contractors wanting to                                                                    
use the lapsed funding for  recruitment and for housing. The                                                                    
department indicated that  it was not an  appropriate use of                                                                    
the funds.  She asked  for more  detail. Mr.  Byrnes thought                                                                    
the question  should be  addressed by a  member that  sat on                                                                    
the VPSO  Working Group  or by  the department.  He reported                                                                    
that the members of the  VPSO Working Group and the grantees                                                                    
that participated  raised concerns about how  the funds were                                                                    
being distributed,  the intended purpose for  the funds, and                                                                    
the  willingness of  the  department to  use  the funds  for                                                                    
those purposes.                                                                                                                 
                                                                                                                                
Co-Chair Johnston wanted to make  sure the committee was not                                                                    
comparing apples  to oranges. She  was always  interested in                                                                    
unfilled  position and  not funding  them if  they were  not                                                                    
going to  be filled. She was  unclear about the need  of the                                                                    
funds and  noted a disagreement  about the structure  of the                                                                    
VPSO program.                                                                                                                   
                                                                                                                                
Representative   Sullivan-Leonard    asked   if    the   DPS                                                                    
commissioner could  assist with  some of the  questions that                                                                    
were being posed.                                                                                                               
                                                                                                                                
AMANDA  PRICE, COMMISSIONER,  DEPARTMENT  OF PUBLIC  SAFETY,                                                                    
reported that  at the close of  the second quarter in  FY 20                                                                    
the program had expended  35.9 percent of the appropriation.                                                                    
She expected 50  percent of the appropriation  at 50 percent                                                                    
of  the  year  to  be  expended.  The  department  had  also                                                                    
provided  a comprehensive  response to  the working  group's                                                                    
findings  and  recommendations.  The  department's  response                                                                    
included  a  significant  amount of  historical  information                                                                    
over the prior  40 years that brought up  issues relating to                                                                    
retention and  recruitment that  plagued the  program. There                                                                    
had been  a number of  white papers and concept  papers that                                                                    
had been put forward over  the 40-year period addressing the                                                                    
issues   the  program   had  faced   since  inception.   The                                                                    
department was currently  in the process of  adopting one of                                                                    
the recommendations  of the working  group: to  transfer the                                                                    
positions administratively  that govern  the program  to the                                                                    
Department of Commerce,  Community, and Economic Development                                                                    
(DCCED).                                                                                                                        
                                                                                                                                
3:05:36 PM                                                                                                                    
                                                                                                                                
Representative  Josephson   remarked  that  there   are  230                                                                    
villages,   a  minority   of  which   were  served   by  law                                                                    
enforcement. He  suggested that whatever the  issues were, a                                                                    
significant amount  of resources  would be needed.  He asked                                                                    
if  he was  accurate.  Commissioner Price  responded in  the                                                                    
affirmative.                                                                                                                    
                                                                                                                                
Representative  Wool  asked  how   many  communities  had  a                                                                    
Village Police  Officer (VPO)  - different  from a  VPSO and                                                                    
not housed within DPS. He wondered if he was accurate.                                                                          
                                                                                                                                
Commissioner  Price   responded,  "You  are   correct."  She                                                                    
reported  that   there  was   a  regulation   that  required                                                                    
communities to  notify the  Alaska Police  Standards Council                                                                    
which  was part  of  DPS when  a  VPO was  hired.  It was  a                                                                    
regulation and not codified which  the department was trying                                                                    
to  rectify.  The  department  had   a  list  of  VPOs  from                                                                    
communities   that   provided   the   information   to   the                                                                    
department.  She  did not  have  the  list at  her  disposal                                                                    
currently but could provide the number to the committee.                                                                        
                                                                                                                                
Representative Wool asked if the  quantity was similar to 33                                                                    
VPSOs.  Commissioner  Price  thought  the  number  regulated                                                                    
through the Alaska Police Standards Council was about 45.                                                                       
                                                                                                                                
Co-Chair  Foster wondered  what percentage  of villages  did                                                                    
not  have any  public  safety  presence. Commissioner  Price                                                                    
thought  the question,  which  had  been circulated  through                                                                    
media,  was  a  bit  misleading.  She  indicated  that  just                                                                    
because there might  not be someone in  a particular village                                                                    
did not mean public safety  was not provided to that village                                                                    
from a  hub community.  The working  group's recommendations                                                                    
included adopting  the hub and  spoke model that  the Alaska                                                                    
State Troopers  currently used. She explained  that it meant                                                                    
having  a VPSO  in  a community  and  providing services  to                                                                    
surrounding   communities.   The   model   had   worked   as                                                                    
effectively   as   possible   within   Alaska's   geographic                                                                    
constraints  and employment  and  personnel limitations  the                                                                    
department faced.  There was a  large number  of communities                                                                    
that  did  not have  a  peace  office  or a  police  officer                                                                    
located in their community.                                                                                                     
                                                                                                                                
Representative Knopp  brought up  Representative Josephson's                                                                    
question about additional resources  that would be needed to                                                                    
fix the problem. He wondered  about the grant funds that had                                                                    
not be utilized. He asked  what resources Commissioner Price                                                                    
was referring to.                                                                                                               
                                                                                                                                
Commissioner Price responded that  there was a comprehensive                                                                    
need    in   Alaska.    However,    there   were    housing,                                                                    
infrastructure,  and holding  facility challenges.  Specific                                                                    
to the  VPSO Program the  common goal was to  improve public                                                                    
safety  by increasing  the number  of officers  available to                                                                    
serve Alaska's communities. The  challenges that plagued the                                                                    
VPSO Program were  historic and had not  been corrected even                                                                    
though many years  of work had gone into  attempting to make                                                                    
necessary  changes. She  suggested  a change  of focus  from                                                                    
what the department was doing  regarding the VPSO Program to                                                                    
getting a comprehensive report from  each of the 10 grantees                                                                    
on  what their  recruitment  requests had  been; what  their                                                                    
actions had  been; and how many  times they had been  in the                                                                    
villages conducting recruitment.                                                                                                
                                                                                                                                
Commissioner  Price  reported  that  in  FY  20  recruitment                                                                    
efforts were  funded to every single  grantee that requested                                                                    
recruitment  funding. The  recruitment dollars  went to  the                                                                    
creation  of videos  located on  social media  and linked-in                                                                    
advertising  and   impacted  the  department's   ability  to                                                                    
recruit.  However,  due  to   the  functional  and  historic                                                                    
creation of  the program  looking to  hire from  a community                                                                    
for   a  community,   she   had   questions  whether   those                                                                    
recruitment efforts  were effective in meeting  the goals of                                                                    
the program.                                                                                                                    
                                                                                                                                
Vice-Chair  Ortiz  asked  the  commissioner  to  review  the                                                                    
difference between  a VPO and  a VPSO in terms  of promoting                                                                    
public safety.                                                                                                                  
                                                                                                                                
Commissioner  Price  responded  that  a  VPSO  was  a  peace                                                                    
Officer and a Village Police  Officer was a police officer                                                                      
two   statutorily   different   definitions.  One   of   the                                                                    
challenges  with the  program  was related  to the  question                                                                    
itself.  She explained  that  peace  officers and/or  police                                                                    
officers  working for  a non-police  agency were  challenged                                                                    
with  liability  insurance,  use of  force  compliance,  and                                                                    
other  such  challenges  and  concerns.   It  was  a  direct                                                                    
question that related to a  VPSO's ability to carry a weapon                                                                    
which statutorily  was allowed. However, currently  none did                                                                    
so  because  of  liability  concerns.  Having  a  non-profit                                                                    
employ essentially a police force  was one of the structural                                                                    
challenges  of  the  program. In  addition,  having  a  VPSO                                                                    
present  in any  community did  not negate  the need  for an                                                                    
Alaska  State Trooper  to respond.  A Village  Public Safety                                                                    
Officer was  a supplement, not  a replacement for  an Alaska                                                                    
State Trooper.                                                                                                                  
                                                                                                                                
Representative Wool  mentioned seeing more VPSO  vehicles in                                                                    
the  Fairbanks  Area  than previously.  He  noted  that  the                                                                    
community of Nenana  was currently served by a  VPSO. In the                                                                    
past, there were troopers present.  He wondered if VPSOs had                                                                    
been brought  into the  area because  there were  not enough                                                                    
troopers. He asked for clarity.                                                                                                 
                                                                                                                                
Commissioner Price replied that  the community of Nenana had                                                                    
a  trooper, Trooper  Hessler, who  was  on paternity  leave,                                                                    
which was  the reason  he had  not been  physically present.                                                                    
The  community of  Nenana  had  both a  trooper  and a  VPSO                                                                    
present. She  continued that a  VPSO had a different  set of                                                                    
hiring, background,  and training requirements.  The Village                                                                    
Public  Safety  Officer  was not  best  suited  to  complete                                                                    
complex  felony investigations.  The historic  generation of                                                                    
the VPSO was  to have a first responder that  was trained in                                                                    
fire   prevention,  law   enforcement  being   one  of   the                                                                    
components.  They were  meant to  be a  gap until  an Alaska                                                                    
State  Trooper  was  present. The  grantees  work  with  the                                                                    
communities,  and  there were  a  number  of requirements  a                                                                    
community  had  to  demonstrate  before  the  grantee  would                                                                    
select to  place a VPSO  in those communities.  The decision                                                                    
where a VPSO  was placed rested solely with  the grantee and                                                                    
not DPS.                                                                                                                        
                                                                                                                                
Representative  Carpenter  asked  about  the  Tribal  Police                                                                    
Officer (TPO).  He wondered  if they  fell under  the Alaska                                                                    
Police Standards Council. He asked  about the funding source                                                                    
for TPOs.                                                                                                                       
                                                                                                                                
Commissioner  Price replied  that the  funding for  TPOs did                                                                    
not come  through the State  of Alaska. They  were primarily                                                                    
funded  through  the  U.S.  Department  of  Justice  through                                                                    
Community   Oriented  Policing   Services  (COPS)   funding.                                                                    
Village Police  Officers were  certified through  the Alaska                                                                    
Police Standards Council, whereas, TPOs were not.                                                                               
                                                                                                                                
^DEPARTMENT OF MILITARY AND VETERANS AFFAIRS                                                                                  
                                                                                                                                
3:15:16 PM                                                                                                                    
                                                                                                                                
ANNE RITTGERS, STAFF, REPRESENTATIVE BART LEBON, read from                                                                      
a prepared statement:                                                                                                           
                                                                                                                                
     Recommendations:                                                                                                           
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of Military  and Veterans'  Affairs submits                                                                    
     the following  recommended operating budget  for FY2021                                                                    
     to the House Finance Committee:                                                                                            
                                                                                                                                
          Fund Source: (dollars are in thousands)                                                                               
               Unrestricted General Funds (UGF) $22,726.1                                                                       
               Designated General Funds (DGF) $178.4                                                                            
               Other Funds $9,752.9                                                                                             
               Federal Funds $32,986.5                                                                                          
               Total $65,643.9                                                                                                  
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY21                                                                    
     Adjusted   Base  to   the  House   Subcommittee  budget                                                                    
     recommendation  is a  reduction of  $715.9 thousand  of                                                                    
     Unrestricted General  Funds, which  is 3.1%  below FY21                                                                    
     Adjusted Base.                                                                                                             
                                                                                                                                
          Positions:                                                                                                            
               Permanent Full-time 287                                                                                          
               Permanent Part-time 0                                                                                            
               Temporary 0                                                                                                      
               Total 287                                                                                                        
                                                                                                                                
     Budget Action:                                                                                                             
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of  Military and Veterans'  Affairs reviewed                                                                    
     the   FY2021  budget   request,   and  recommends   the                                                                    
     following actions:                                                                                                         
                                                                                                                                
     Accept the Department of Military and Veterans'                                                                            
     Affairs   budget   proposal,   which   includes   these                                                                    
     highlights:                                                                                                                
                                                                                                                                
          Transfer of Alaska Land Mobile Radio and State of                                                                   
          Alaska   Telecommunications    System   from   the                                                                    
          Department of Administration to the Department of                                                                     
          Military and Veterans' Affairs                                                                                        
          Delete one full time administrative assistant                                                                       
          position, -$83.4 UGF                                                                                                  
          Reduce authority due to janitorial contract                                                                         
          savings, -$123.0 UGF                                                                                                  
          Reduce authority due to armory divestiture, -                                                                       
          $50.0 UGF                                                                                                             
                                                                                                                                
     Attached Reports:                                                                                                          
                                                                                                                                
     The House Finance Budget Subcommittee for the                                                                              
     Department of Military and Veterans' Affairs adopts                                                                        
     the attached reports:                                                                                                      
                                                                                                                                
        1. Agency Totals  FY21 Operating Budget (Attachment                                                                   
           A)                                                                                                                   
        2. Transaction  Compare    between   Adjusted   Base                                                                  
           (FY21AdjBase) and House Subcommittee (H Sub)                                                                         
           (Attachment B)                                                                                                       
        3. Transaction Compare between Governor (FY21Gov)                                                                     
           and House Subcommittee (H Sub) (Attachment C)                                                                        
        4. Wordage (Attachment D)                                                                                             
                                                                                                                                
^DEPARTMENT OF REVENUE                                                                                                        
                                                                                                                                
3:16:43 PM                                                                                                                    
                                                                                                                                
ANNE RITTGERS, STAFF, REPRESENTATIVE BART LEBON, read from                                                                      
a prepared statement:                                                                                                           
                                                                                                                                
     RECOMMENDATIONS:                                                                                                           
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department   of    Revenue   submits    the   following                                                                    
     recommended operating  budget for  FY2021 to  the House                                                                    
     Finance Committee:                                                                                                         
                                                                                                                              
          Fund Source: (dollars are in thousands)                                                                               
               Unrestricted General Funds (UGF) $27,382.6                                                                       
               Designated General Funds (DGF) $2,626.3                                                                          
               Other Funds $266,235.2                                                                                           
               Federal Funds $79,931.2                                                                                          
               Total $376,175.3                                                                                                 
                                                                                                                                
          Positions:                                                                                                            
               Permanent Full-time 823                                                                                          
               Permanent Part-time 24                                                                                           
               Temporary 17                                                                                                     
               Total 864                                                                                                        
                                                                                                                                
     BUDGET ACTION:                                                                                                             
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of  Revenue   reviewed  the  FY2021  budget                                                                    
     request,  including  amendments,   and  recommends  the                                                                    
     following actions:                                                                                                         
     Accept the Department of Revenue budget proposal,                                                                          
     which includes these highlights:                                                                                           
                                                                                                                                
          Adding funding for the Tax Revenue Management                                                                       
          System Maintenance and Support Costs, $2,221.6                                                                        
          UGF                                                                                                                   
          Reducing Alaska Retirement Management Board                                                                         
          Custody and Management Fees, $-5,000.0 other                                                                          
          funds                                                                                                                 
          Reduce    Alaska   Permanent    Fund   Corporation                                                                  
          Management Fees, $-21,098.1 PF Gross                                                                                  
          Consolidate Fish Tax Group into Excise Tax Group                                                                    
          and Delete Publications Specialist, $-346.6 UGF                                                                       
          Adding funding for Long Term Care Ombudsman                                                                         
          Office travel impacting the health and safety of                                                                      
          Alaskan seniors, $21.7 UGF                                                                                            
                                                                                                                                
   The House Finance Budget Subcommittee for the Department                                                                     
   of Revenue recommends that the committee take the                                                                            
   following actions:                                                                                                           
                                                                                                                                
       Add to the Alaska Permanent Fund Corporation                                                                           
        appropriation, APFC Operations allocation for the                                                                       
      Incentive Compensation Plan, $2,763.5 PF Gross                                                                            
                                                                                                                                
Representative   Wool   asked   about   the   reduction   of                                                                    
$21 million  from  the  Alaska  Permanent  Fund  Corporation                                                                    
(APFC)  management  fees.  Ms. Rittgers  answered  that  the                                                                    
reduction was a result of  the elimination of their external                                                                    
investment officer program and bringing it in-house.                                                                            
                                                                                                                                
Representative  Wool asked  if  the savings  of $21  million                                                                    
allowed   for   the   incentive  plan   of   $2.7   million.                                                                    
Representative LeBon responded that it  was not just an off-                                                                    
set because of a savings in  one area. It was also to retain                                                                    
and  reward performance  in a  critical area  of the  Alaska                                                                    
Permanent   Fund  Corporation   (APFC).   It   was  a   very                                                                    
competitive world  at large investment houses.  The board of                                                                    
directors  requested  the  headroom  to  payout  performance                                                                    
bonuses  if they  were earned.  It was  up to  the executive                                                                    
director and  the board of directors  to measure performance                                                                    
and pay out bonuses as they were warranted.                                                                                     
                                                                                                                                
Representative Wool  was glad the  issue had  been addressed                                                                    
in a recommendation. He observed  there were savings as well                                                                    
from bringing the investment duties in-house.                                                                                   
                                                                                                                                
Representative Josephson asked if  the bonus being discussed                                                                    
was related to  a state employee. Ms.  Rittgers replied that                                                                    
the  program was  for APFC  employees. The  awards would  be                                                                    
available  to   eligible  staff   contingent  on   the  fund                                                                    
exceeding its short and long-term policy benchmarks.                                                                            
                                                                                                                                
3:20:48 PM                                                                                                                    
                                                                                                                                
Representative  Josephson surmised  there  was $2.7  million                                                                    
that could  be awarded  to employees  that largely  lived in                                                                    
Juneau. Ms. Rittgers replied in the affirmative.                                                                                
                                                                                                                                
Representative Josephson  asked if the program  was new. Ms.                                                                    
Rittgers believed  that the board  of trustees  first talked                                                                    
about  the program  in 2017,  and the  current year  was the                                                                    
first time the budget recommendation had been put forward.                                                                      
                                                                                                                                
Representative Josephson  was familiar  with the  nature and                                                                    
culture of the work and  the competitiveness of holding onto                                                                    
individuals.   However,  he   was  unfamiliar   with  public                                                                    
employees receiving  such a privilege.  He had not  seen the                                                                    
policy  occur within  other agencies.  He suggested  further                                                                    
dialog might  be helpful. Representative LeBon  replied that                                                                    
investment management expertise at  that level was so unique                                                                    
and  competitive. He  thought the  headroom was  critical to                                                                    
APFC's  long-term ability  to recruit  and  retain the  high                                                                    
level of talent that was necessary.                                                                                             
                                                                                                                                
Co-Chair  Johnston  noted  that  the  corporation  had  been                                                                    
bringing  in many  of its  investments in-house.  She agreed                                                                    
that the  corporation was  starting to  save money  and make                                                                    
more  money.  She   concurred  with  Representative  LeBon's                                                                    
comments. She thought everyone wanted to see the fund grow.                                                                     
                                                                                                                                
Representative  Josephson was  not  necessarily opposed.  He                                                                    
was  thinking about  tribal reclaiming  and  how there  were                                                                    
public employees that  had saved the state  $100 million. He                                                                    
asked about  the source of  $266 million. He wondered  if it                                                                    
came from  the Permanent  Fund. Ms. Rittgers  responded that                                                                    
largely the fund source came  from the Permanent Fund. There                                                                    
were also  other fund sources through  the Alaska Retirement                                                                    
Management Board  (ARMB) management fee  reduction including                                                                    
Group Benefits,  PERS Trust, Teachers'  Retirement, Judicial                                                                    
Retirement, and the National Guard Fund.                                                                                        
                                                                                                                                
Representative  Wool  recalled previous  conversations  with                                                                    
the  executive  director  about  saving  money  by  bringing                                                                    
certain services in-house  and using the savings  as part of                                                                    
a  bonus  structure. He  noted  that  ARMB was  also  saving                                                                    
management fees  of about $5  million. He wondered  if there                                                                    
was  a parallel  program.  Ms. Rittgers  responded that  the                                                                    
subcommittee put  forward the amendment for  APFC employees.                                                                    
However, there  were no other  amendments for  other managed                                                                    
fund employees.                                                                                                                 
                                                                                                                                
Co-Chair Foster reviewed the agenda  for the next meeting at                                                                    
9:00 a.m. the following day.                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
3:25:56 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 3:25 p.m.                                                                                          

Document Name Date/Time Subjects
HB 205 CS FIN Work Draft v.M21720.pdf HFIN 2/17/2020 1:30:00 PM
HB 205
CS HB 206 FIN Work Draft v.M 21720M.pdf HFIN 2/17/2020 1:30:00 PM
HB 206
HB 205 & HB 206 Compare v.A to v.M.pdf HFIN 2/17/2020 1:30:00 PM
HB 205
HB 206
HB 205 SubC DMVA Reports Pkt. 021720.pdf HFIN 2/17/2020 1:30:00 PM
HB 205
HB 205 SubC Reports DPS 021720.pdf HFIN 2/17/2020 1:30:00 PM
HB 205
HB 205 Subc DOA Reports PKT 021720.pdf HFIN 2/17/2020 1:30:00 PM
HB 205
HB 205 Subc GOV Reports PKT 021720.pdf HFIN 2/17/2020 1:30:00 PM
HB 205
HB 205 SubC Reports DHSS 021720.pdf HFIN 2/17/2020 1:30:00 PM
HB 205
HB 205 SubC Reports DOT 021720.pdf HFIN 2/17/2020 1:30:00 PM
HB 205
HB 205 SubC Reports DEC 021720.pdf HFIN 2/17/2020 1:30:00 PM
HB 205
HB 205 SubC Reports DFG 021720.pdf HFIN 2/17/2020 1:30:00 PM
HB 205
HB 205 SubC Reports DEED 021720.pdf HFIN 2/17/2020 1:30:00 PM
HB 205
HB 205 Response Gov Closeout MultiYearPositionSum021820.pdf HFIN 2/17/2020 1:30:00 PM
HB 205